Jewellery company Shringar House of Mangalsutra’s initial public offering () will be open for subscription from September 10 to 12, as per their official announcement. Shringar House of Mangalsutra IPO price band has been established at ₹155 to ₹165 per share, totaling ₹401 crore for the initial share sale.
The company based in Mumbai is offering a fresh issue of 2.43 crore equity shares, which amounts to ₹401 crore at the highest point of the price range, without any Offer For Sale () component.
The funds raised from the new issue will be utilised to meet the working capital needs of the company and for general corporate purposes.
Founded in 2009, Shringar House of Mangalsutra specializes in the design, manufacture, and sale of a wide variety of Mangalsutras, which feature different stones including American diamonds, cubic zirconia, pearls, mother of pearl, and semi-precious stones, crafted in both 18k and 22k gold. The firm’s operational revenue surged to ₹1,430 crore in fiscal 2025, up from ₹1,101 crore in the previous fiscal year, while profit after tax increased to ₹61 crore from ₹31 crore during that time.
Choice Capital Advisors is acting as the sole book-running lead manager, with MUFG Intime India serving as the registrar for the offering.
Shringar House of Mangalsutra IPO GMP is +25. This indicates Shringar House of Mangalsutra share price were trading at a premium of ₹25 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Shringar House of Mangalsutra share price was indicated at ₹190 apiece, which is 15.15% higher than the IPO price of ₹165.
Shringar House of Mangalsutra IPO – Key Risks
Here are some of the key risks listed by the company in its Red-Herring Prospectus (RHP):
- During Fiscal 2025, Fiscal 2024, and Fiscal 2023, the actual capacity utilization was recorded at 69.00%, 70.00%, and 66.80%, respectively, of the total installed capacity. Inadequate utilization of their manufacturing capabilities and a failure to fully leverage their expanded manufacturing facilities could negatively impact their business, future prospects, and financial performance.
- The Company requires a substantial amount of working capital to maintain growth. They plan to allocate ₹2,800.00 million from the total Net Proceeds to support their working capital needs, and the intended use of Net Proceeds in Fiscal 2026 is based on specific assumptions and management projections. If they cannot fulfill their working capital requirements under commercially viable conditions, it could adversely affect their business, financial status, and operational results.
- The company’s operations rely on a single manufacturing facility located in Mumbai, Maharashtra. Any slowdown or shutdown of these operations, or any negative developments in that region, could adversely affect their business, operational results, financial condition, and cash flow.
- The company’s business is mainly concentrated in the state of Maharashtra, which contributed 49.50%, 49.21%, and 44.11% of their revenue from operations for Fiscal 2025, Fiscal 2024, and Fiscal 2023, respectively. Any negative developments in this region may have a detrimental impact on their business, prospects, financial condition, and operational results.
- All of their revenue from operations comes from the sale and supply of a single product, Mangalsutra. A decline in Mangalsutra sales or their inability to produce and sell Mangalsutras may negatively affect their business, operational results, cash flows, and financial condition.
- The company relies on Karigars for the manufacturing of Mangalsutras. If they are unable to retain or recruit these Karigars, it could negatively impact their business, operational results, and financial condition.
- Sales and revenue are subject to seasonal variations, and reduced income during peak seasons may disproportionately affect their operational results.
- The company may struggle to safeguard their intellectual property, including designs, and they are vulnerable to litigation concerning infringement of intellectual property rights related to these designs. This could significantly and negatively impact their reputation, operational results, and financial condition.
- Operating in a labor-intensive industry, the company is subject to strict labor regulations. Any strikes, work stoppages, increased wage demands from employees, or other conflicts could adversely affect their business, financial condition, operational results, and cash flows.
- Jewelry purchases are discretionary and are often viewed as luxury items. Any factors that negatively impact discretionary spending by end consumers could adversely affect their business, operational results, financial condition, and prospects.
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